The following information was drawn from the records of Calico CompanySales Revenue (300 @ $650 per unit)Cost of Goods Sold: Variable (300 @ $350 per unit)FixedGross MarginSales Commissions (300 @ $30)DepreciationNet IncomeMultiple ChoiceBased on this information the magnitude of operating leverage is approximately:Note: Round you answer to 2 decimal places.OOOO1.17.1.11.Income Statement1.24.0.89.$ 195,000(105,000)(10,500)79,500(9,000)(1,500)$ 69,000

Operating leverage : Operating leverage is a measure of the extent to which fixed costs are being…

The following information was drawn from the records of Calico Company Income Statement Sales Revenue (300@ $650 per unit) Cost of Goods Sold: Variable (300 @ $350 per unit) Fixed Gross Margin Sales Commissions (300 @ $30) Depreciation Net Income Based on this information the magnitude of operating leverage is approximately: Note: Round you answer to 2 decimal places. Multiple Choice 1.17. 111. $ 195,000 1.24. (105,000) (10,500) 79,500 (9,000) (1,500) $ 69,000

The following information was drawn from the records of Calico Company Income Statement Sales Revenue (300@ $650 per unit) Cost of Goods Sold: Variable (300 @ $350 per unit) Fixed Gross Margin Sales Commissions (300 @ $30) Depreciation Net Income Based on this information the magnitude of operating leverage is approximately: Note: Round you answer to 2 decimal places. Multiple Choice 1.17. 111. $ 195,000 1.24. (105,000) (10,500) 79,500 (9,000) (1,500) $ 69,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.5.1MBA

See similar textbooks

Similar questions

DEF Inc. gives the following information. Sales 10,494$ Variable Costs $3,498 Fixed costs $1,817 Interest expense $1,000 Calculate the Degree of Financial Leverage. Answer to be in 2 decimals.
Tom Company reports the following data: Sales Variable costs Fixed costs Determine Tom Company's operating leverage. Round your answer to one decimal place. $156,332 81,532 30,800
The following income statement is provided for Vargas, Inc. What is this company's magnitude of operating leverage? Assume that net income is equal to operating income.
Using the Van Accessible data from Table 5–4: Calculate the degree of operating leverage (DOL). Calculate the degree of financial leverage (DFL). Calculate the degree of combined leverage (DCL). Explain what DOL, DFL, and DCL mean.
Asset Efficiency Ratios Selected financial statement numbers for Rutherford Company follow. Required: 1. Using this information, calculate Rutherfords receivable turnover ratio (rounded to two decimal places.) 2. Using this information, calculate Rutherfords asset turnover ratio (rounded to two decimal places) and also convert the ratio into days (rounded to the nearest whole day).
For the Year Ended December 31, 20X1 Sales (23,000 tires at $66 each) Variable costs (23,000 tires at $33) Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (30%) Earnings after taxes (EAT) a. Compute the degree of operating leverage. Note: Round your answer to 2 decimal places. Degree of operating leverage b. Compute the degree of financial leverage. Note: Round your answer to 2 decimal places. Degree of financial leverage ............... c. Compute the degree of combined leverage. Note: Round your answer to 2 decimal places. Degree of combined leverage d. Compute the break-even point in units. $ 1,518,000 759,000 430,000 $ 329,000 51,500 $ 277,500 83,250 $ 194,250
please solve for A1 and B
aaa
The single-column CVP income statements shown below are available for Wildhorse Company and Blossom Company, Sales Variable costs Contribution margin Fixed costs Net income Wildhorse Wildhorse Co. Blossom $495,000 239,000 256,000 1000 156,000 $100,000 Blossom Co. Degree of Operating Leverage $495,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) $ 51,000 444,000 344,000 $100,000 (b) Assuming that sales revenue increases by 10% (due to a 10% increase in the number of units sold), prepare a single-plumn CVP income statement for each company. Wildhorse Company $ tA $ Blossom Company
Please provide answer in text (Without image)
Briggs Company has operating income of $45,760, invested assets of $143,000, and sales of $457,600. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin % b. Investment turnover c. Return on investment %
Profit Margin, Investment Turnover, and ROI Briggs Company has income from operations of $132,756, invested assets of $299,000, and sales of $1,106,300. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin % b. Investment turnover c. Return on investment %